BIA extension has not allocated space for logistics services- SLFFA

Fizel Jabir

The newly proposed extension of BIA has not allocated space for logistics services, even though significant growth is seen in tran-shipments handled through BIA, alleged Sri Lanka Logistics & Freight Forwarders Association (SLFFA) Immediate Past Chairperson Tania Polonnowita Wettimuny addressing the 36th AGM in Colombo recently.

“We would like to urge the chairman and the board of Airport and Aviation Services Sri Lanka (AASL) to look at our request of both improvement of the existing air cargo village facility to global standards and allocation of possible area for logistics in your proposed expansion,” she requested.

The shortage of equipment and machinery and labor issues from time to time has created delays, double handling, damages, losses with no compensation.

“Particularly in the less-than-container-load cargo and multi-country consolidation cargo all resulting in higher than acceptable costs to clear out LCL and MCC cargo, which in turn has impacted our customers’ daily operations,” she alleged.

“It is also disappointing to note the current status of our warehouse facilities within the port premises. While the country’s vision is to promote the hub concept, very little initiatives and emphasis have gone into infrastructure development related to improvement of warehousing, CFS facilities to cater to our customers locally and overseas.”

“We call on you to actively support the participation of our neutral industry body SLFFA cargo services initiatives and investment to provide services so urgently needed for LCL and MCC cargo within the port without considering it a threat or competition to the SLPA as this can potentially be a win-win solution for all parties,” she said.

Referring to the government’s infrastructure development in ports, she said they were very excited to note the initiatives and efforts taken by the Government to activate the Hambantota Port.

“We are closely watching the initiatives being been taken by the government to restructure Sri Lankan Airlines and its associated activities such as ground handling.

SLFFA has always advocated the need for a strong and efficient national carrier and level playing field and to this extent we welcome these initiatives so long as there is full transparency in the whole process.”

“In this context, we urge the authorities not to permit the operation of centralized cargo agents settlement system (CASS) in Sri Lanka as this is ill-conceived for local market conditions and will ultimately have a serious financial cash flow impact on small and medium scale exporters, particularly those exporters of fruits, vegetables, ornamental fish and other live fish products and indeed on all of the perishable exports.”

She said they would also like to see SriLankan using its role as sole ground handler to fast track the process of e-awb, e-booking initiatives which SLFFA cargo services have invested significantly for last four years within SriLanka in conjunction with CCN.

She pointed out that e-trading initiative if fast-tracked can potentially save the industry million of rupees by way of eradication of duplicated paper trail and physical interface.

Further during the year under review, SLFFA made submissions to the Ministry of Finance requesting to allow the corporate tax component of freight forwarders to remain at the lower rate of 14%, which was accepted and incorporated into the 2017 budget proposals. This new tax will applicable from financial year 2017/2018.